Sonic S is currently trading near a critical support level of $0.2884, with bearish pressure mounting. Traders closely watch for either a breakout or a breakdown to determine the token’s direction in early June. A move below this support could see prices decline towards $0.25. Negative funding rates and rising open interest suggest increasing short exposure amidst weakening momentum and declining trading volume. While a rebound towards $0.3152 is possible if $S holds above support, resistance and lack of buyer commitment cloud the outlook. The token has seen a week-long downtrend, falling another 8.1% to trade near $0.2898 on Friday. This move leaves it below its intraday low of $0.2884, prompting concerns about potential short selling. A deeper support is situated at $0.395 based on a 12-hour perpetual-futures chart that has repeatedly capped sell-offs since mid-March. Whether this broader level can continue to anchor price action remains uncertain for traders. The token’s structure is fragile, with it trading below its 20-period exponential moving average and piercing the mid-April ascending trendline on the 12-hour timeframe. The relative strength index (RSI) sits in the mid-30s, highlighting waning momentum but not yet reaching oversold territory. Volume has also decreased, suggesting buyer commitment is lagging. A decisive close below $0.2884 could expose the March swing low near $0.2500, while any rebound faces immediate resistance at $0.3152. This level was the former range midpoint and doubles as a 50-period EMA. Negative funding rates for the Sonic perpetual contract have turned negative for the first time in three weeks, reflecting growing bearish sentiment among leveraged traders. Open interest has also increased, potentially indicating fresh short exposure rather than new long positions. Sonic S continues to navigate a delicate position: it’s caught between fading liquidity and a crowded short trade. Traders considering entering positions should wait for confirmation at key support levels before committing to any trades as the next move could significantly impact the token’s trajectory in early June. #Sonic #S is on the verge of retesting the $0.395 support level. This is a crucial point to watch, potentially signaling a bounce or breakdown.